Water legislation

Under the Water Act, the Victorian Government retains the overall right to use and control flows of Victoria's surface water and to issue entitlements. The Water Act establishes the water entitlement framework for the allocation and management of the State's water resources. It sets out the functions, powers, and governance for Victoria's rural and regional water corporations and Melbourne Water.

The Water Industry Act governs how Government–owned retail and regional water authorities are licensed and operate.

Groundwater

Groundwater in Victoria is managed through the 'take and use' licensing of water abstraction for irrigation and commercial purposes. Aquifers are also protected through a bore construction licensing framework that controls the standards of bore–construction.

Licensing powers are derived from the Water Act and are delegated by the Victorian Minister for Water. The Water Act provides for:

licensing of drillers

licensing of bore construction

licensing of groundwater abstraction for irrigation and commercial purposes

continuation of private rights to groundwater for domestic and stock use

preparation of management plans in water supply protection areas.

Applications for new bore construction licences and groundwater extraction licences are assessed, taking into account any adverse impacts on existing users, waterways, wetlands, and aquifers.

The Water Act allows individuals to extract water for domestic and stock purposes from a range of surface water and groundwater sources without a licence. These domestic and stock rights are defined under sections 8(1) and 8(4)(c) of the Water Act and are not formally licensed.

Water management plans

Victoria's water entitlement and allocation framework provides the basis for the management of Victoria's water resources and governs the way water can be abstracted and used in Victoria. The framework takes a whole-of-system approach to water management in that it considers all water resources (surface water and groundwater) for both consumptive and environmental purposes at all phases of the water cycle.

The main planning documents and initiatives which influenced water management in the Melbourne region during the 2012–13 year were:

Under Division 3 of Part 3 of the Water Act, groundwater management plans must be developed when a groundwater management unit (GMU) is declared a water supply protection area. In the Melbourne region, a groundwater management plan is in place for the Koo Wee Rup water supply protection area. It outlines the potential risks to groundwater in the area and management actions, including the permanent trading zones and rules. It also aims to protect water quality by managing use near the coast to reduce the likelihood of seawater intrusion to the aquifers.

In water supply protection areas, management rules are developed that describe:

the resource

management objectives

specific rules for restrictions in times of shortage, carry–over (if applicable), and trade.

Local management rules cannot amend licence conditions.

Environmental water management

Environmental water legislation

The Victorian Environmental Water Holder (VEWH) was established on 1 July 2011 through an amendment to the Water Act 1989 (the Water Act). The VEWH is an independent statutory body responsible for making decisions on the best use of Victoria's environmental water entitlements. It collaborates with catchment management authorities and Melbourne Water to achieve the best environmental outcomes with the existing environmental entitlements.

Within the State of Victoria, the environment's share of water is called the 'Environmental Water Reserve'.

The Environmental Water Reserve is defined in Section 4A of the Water Act and is made up of:

entitlements for the environment

water set aside for the environment through the operation of conditions on consumptive water entitlements and provisions in water supply management plans

above–cap water that includes water left over after limits on diversions are reached, and unregulated flows that cannot be held in storage.

Environmental water provisions

Environmental entitlements

An environmental entitlement is a right to water made by the Victorian Minister for Water and held by the VEWH. As with bulk entitlements, environmental entitlements provide a range of conditions and obligations relating to the abstraction and use of water.

In addition to environmental entitlements, the Environmental Water Reserve comprises:

water set aside for the environment through the operation of passing flows released as a condition of consumptive bulk entitlements held by the Melbourne retail water companies, Southern Rural Water, Western Water, and Central Highlands Water;

water set aside for the environment through the operation of passing flow conditions on licensed diversions (regulated and unregulated waterways);

water set aside for the environment through the operation of streamflow management plans including operation of passing flow conditions on licensed diversions; and

all other water not allocated for consumptive use (i.e., water above the cap).

Waterway management

Waterway management and general river health management is the responsibility of the catchment management authority and Melbourne Water.

Streamflow management plans are managed by Melbourne Water. Streamflow management plans in place for the 2012–13 year include those for:

holds an entitlement to water within Tarago Reservoir that provides urban supply to the towns of Drouin and Neerim South in the east of the region and also supplies some urban areas outside the Melbourne region; and

responsible for coordinated catchment management within the Melbourne region; and

provides leadership to a range of stakeholder groups to deliver integrated catchment management and sustainability of the region's catchments. These groups include Melbourne Water, government agencies, local government and community groups